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| 1 | |
Global monitoring only tracks environmental trends, sequences of events and streams of activities that the firm comes across by accident. |
| | A) | True |
| | B) | False |
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| 2 | |
In recent years, major airlines have changed hundreds of fares daily in response to competition. This pricing tactic is an example of using_________. |
| | A) | scenario analysis |
| | B) | competitive intelligence |
| | C) | switching costs |
| | D) | corporate espionage |
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| 3 | |
A firm can predict general environmental trends and events, thereby permitting it to control them. |
| | A) | True |
| | B) | False |
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| 4 | |
In studying the general environment, organizations look at the effects of currency exchange rates on their business activity. In the general environment, the evaluation of exchange rates fall under which category? |
| | A) | demographic |
| | B) | political/legal |
| | C) | economic |
| | D) | global |
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| 5 | |
If another major airline enters the marketplace, competitor profits can be affected. Which of the following aspects of the Porter five-forces model is described by this phenomenon? |
| | A) | the bargaining power of suppliers |
| | B) | the threat of substitute products |
| | C) | the threat of new entrants |
| | D) | the intensity of rivalry among competitors |
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| 6 | |
Proctor and Gamble is considered to be a firm with high economies of scale. It competes with other firms of similar economies of scale. This competitive environment is likely to deter new entrants, according to the Porter five-forces model. |
| | A) | True |
| | B) | False |
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| 7 | |
If a supplier group wants to gain market power, according to the Porter five-forces model, what conditions must exist? |
| | A) | there is low differentiation by the supplier |
| | B) | there is a lack of importance of the buyer to the supplier group |
| | C) | there is not a dominance by a few suppliers |
| | D) | there is a significant importance of the buyer to the supplier group |
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| 8 | |
If unable to maintain a credible threat of forward integration, the power of suppliers will be enhanced. |
| | A) | True |
| | B) | False |
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| 9 | |
In the slow-growing airline industry, there are many equally balanced competitors selling products that lack differentiation. This marketplace is most likely to experience high ___________. |
| | A) | bargaining power of suppliers |
| | B) | intensity of rivalry among competitors |
| | C) | threat of new entrants |
| | D) | threat of substitute products |
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| 10 | |
In the automobile manufacturing industry, there are many competitors who do not compete on the same basis. Because all of them are automobile manufacturers, they would be classified in the same strategic group. |
| | A) | True |
| | B) | False |
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